Home / Knowledge / News / Textiles / Crazy day for cotton
Crazy day for cotton
05
Dec '08
Another crazy day for cotton as the outside markets dictates the direction. European central banks made big cuts of interest rates today that were larger than expected from 75 points to 175 points and now all European banks are lending at 2.5% or lower. These are significant cuts from 4-5% that was in place a couple of months ago. This did weigh on the dollar despite the weakness in commodities.

Treasuries continue to take advantage of the housing crisis concerns as Bernanke and others keep talking about lowering long term interest rates. Volume was average today with only 13,000 futures and 9,000 options as we look to be building a trading range for the H'09 with a high at 48.

Sales and shipments were very disappointing today, but the biggest factor was the weakness in outside markets with energy leading the downside move. The old rule that commodities suffer in recessions will keep us in a downtrend much longer. Especially when foreclosure problems and unemployment look like they will get worse before they get better.. The Federal Reserve looks like they are determined to throw as much money at the problems as possible with the current discount rate essentially at 0 for bank to bank lending.

This will eventually lead to inflation concerns down the road which will require interest rate hikes, but that may be 18-24 months from now.

Technically the dollar is establishing a sideways trading range between 85/88. After the ECB announcement, the dollar did test the highs near 88, but eventually came down hard. The stock market also was weak today as we had the big 3 automakers on Capitol Hill who were not giving very optimistic testimony about the future.

Cotton is starting to build a sideways trading channel as we may be heading back to test the lows before moving higher again. Outside markets are still key and look bearish.

Ecom USA


Must ReadView All

Courtesy: ITMA 2015

Textiles | On 21st Jun 2018

Italy to host textile machinery fair ITMA in 2023

ITMA, the trendsetting textile and garment technology platform, will...

Courtesy: Connor Group

Textiles | On 21st Jun 2018

Protectionism top threat to textile sourcing: William Connor

Protectionism is the biggest political factor and threat affecting...

NRF urges US Congress to step in, stop trade war

Apparel/Garments | On 21st Jun 2018

NRF urges US Congress to step in, stop trade war

The National Retail Federation (NRF) recently urged the US Congress...

Interviews View All

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

Top executives
Textile industry, India

Such fairs are a must for industry to showcase new innovations

Nitesh Mittal

Kusumgar Corporates is a leading manufacturer of technical textiles and...

Rajat Jaipuria

Activewear brand Soul Space promotes organic cotton farming and...

Tom Adeyoola

Describing itself as the best body shape and garment fit company in the...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Divvya and Nidhhi Gambhir
Walnut

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

Anisha Chaudhari
Threads & Shirts

Threads &amp; Shirts is a freshly-tailored concept providing men/women a...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


June 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search